Over the long weekend, I have taken the chance to come up with a target allocation for my investment portfolio, so that I can use it as a roadmap for my subsequent rebalancing, either monthly or quarterly.
This is very much a lazy portfolio approach, by diversifying across different asset classes to ensure steady returns in both up and down markets. This is especially important since the stock market looks pretty precarious, and holding too much in stocks will be very painful when it crashes.
Currently, the allocation to cash is quite large, but this is ideal at this late stage in the market. When the market has corrected significantly, the allocation to cash can be reduced to 15-25%, with the additional resources allocated to buying up more stocks and REITs.
About 10% is the target allocation for Commodities (mainly physical Gold kilo bars), which is to act as a hedge should the stock market crash. The rest of the cash is allocated to various products that provide yield returns for the capital and overall portfolio.
REVEALED: FULL PORTFOLIO HOLDINGS!
Here are my current holdings as at the end of April 2016:
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WILL THERE BE A NEW REIT ETF ON SGX SOON?
Last year, SGX created a REIT Index (SGX S-REIT 20 Index), and I hope that this year, there will be a new REIT ETF, so that I can easily add all these REITs without have to buy each and every one of them individually.
Fingers crossed! 😀